MIB Forecast October 28, 2014, Technical Analysis

The MIB as you can see initially gapped higher at the open on Monday, and then spent the entirety of the session falling. We tested the 19,000 level, which of course offered support based upon the fact that it is a large, round, psychologically significant number. However, this is an outside bearish candle, and it most certainly is engulfing. Because of this we would anticipate to see more bearish pressure, and we believe that buying opportunities may persist at lower levels. With that, we are on the sidelines waiting for a supportive candle.